Tayca Corporation (4027): FY2025 Results Summary — Higher Sales, Operating Profit Down 38.3% and a Swing to Net Loss

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: Tayca Corporation does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials (the results briefing materials for the most recent full fiscal year), with figures transcribed as reported. Tayca’s fiscal year ends in March; following this site’s convention, the fiscal year ended March 2026 is classified as FY2025, while the body text and tables below keep the labels used in the source (FY3/2026 = fiscal year ended March 2026; FY3/2027 = fiscal year ending March 2027; in the medium-term plan section, the company’s own labels are used, with FY2025 = fiscal year ended March 2026).

Tayca’s consolidated results for FY3/2026 (April 2025 to March 2026) showed higher sales, with net sales of 57,373 million yen (up 2.9% year on year) on the growth of the Electronic Materials & Chemicals Business. On the other hand, higher profit in the Electronic Materials & Chemicals Business could not fully offset the decline in the Functional Materials Business (general-purpose titanium dioxide and functional fine particle products), and profits fell, with operating profit of 2,176 million yen (down 38.3% year on year) and ordinary profit of 2,672 million yen (down 28.7% year on year). In addition, as a result of recording an impairment loss of 3,170 million yen in the general-purpose titanium dioxide business, profit attributable to owners of parent swung to a net loss of 878 million yen (compared with a profit of 2,422 million yen in the previous fiscal year). For FY3/2027, the company forecasts higher sales and profits.

Consolidated Results (FY3/2026 Actual)

Net sales increased, as the Functional Materials Business declined while the Electronic Materials & Chemicals Business grew. Due to higher cost of sales for electronic and chemical materials (the impact of rising raw material and fuel prices, and higher labor costs and depreciation associated with investment), the gross profit margin fell from 18.3% to 15.7%, and both operating profit and ordinary profit decreased. As a result of recording an impairment loss of 3,170 million yen in the general-purpose titanium dioxide business, net income swung from a profit of 2,422 million yen in the previous fiscal year to a loss of 878 million yen.

Item	FY3/2026 Actual	FY3/2025 Actual	Change (%)
Net sales	57,373 million yen	55,737 million yen	+2.9%
Cost of sales	48,378 million yen (84.3% of net sales)	45,559 million yen (81.7% of net sales)	+6.2%
Gross profit	8,994 million yen (15.7% of net sales)	10,178 million yen (18.3% of net sales)	△11.6%
SG&A expenses	6,817 million yen	6,652 million yen	+2.5%
Operating profit	2,176 million yen	3,525 million yen	△38.3%
Ordinary profit	2,672 million yen	3,747 million yen	△28.7%
Profit attributable to owners of parent	△878 million yen	2,422 million yen	△136.3%

Segment Results

The Functional Materials Business posted lower sales and an operating loss, as demand for general-purpose titanium dioxide for domestic architectural coatings remained weak and inventory adjustments continued overseas. The Electronic Materials & Chemicals Business posted higher sales and profits, as surfactants (for household detergents and hair care) performed well and conductive polymer agents grew in information infrastructure applications such as AI servers in addition to automotive applications. The Medical & Piezoelectric-related Business posted higher sales and profits, as demand for piezoelectric materials remained firm, driven by preemptive inventory building in overseas markets in response to tariffs.

Segment	Metric	FY3/2026 Actual	FY3/2027 Forecast
Functional Materials Business	Net sales	26,213 million yen	27,000 million yen
Functional Materials Business	Operating profit	△606 million yen	△500 million yen
Electronic Materials & Chemicals Business	Net sales	25,758 million yen	26,400 million yen
Electronic Materials & Chemicals Business	Operating profit	2,268 million yen	2,200 million yen
Medical & Piezoelectric-related Business	Net sales	4,249 million yen	4,900 million yen
Medical & Piezoelectric-related Business	Operating profit	225 million yen	600 million yen
Other	Net sales	1,152 million yen	1,200 million yen
Other	Operating profit	278 million yen	200 million yen

Full-Year Forecast (FY3/2027)

For FY3/2027, the company expects higher sales and profits. Despite higher depreciation from capital investment, investment in human resources and soaring raw material and fuel prices, it forecasts increases in both operating profit and ordinary profit on improved profit margins. Capital investment for the current fiscal year will center on repairs and upgrades, and the company does not anticipate any large-scale investment. The impact of tensions in the Middle East on the global economy as a whole is not reflected in this outlook.

Item	FY3/2027 Forecast	FY3/2026 Actual	Change (%)
Net sales	59,500 million yen	57,373 million yen	+3.7%
Operating profit	2,500 million yen	2,176 million yen	+14.9%
Ordinary profit	2,900 million yen	2,672 million yen	+8.5%
Profit attributable to owners of parent	1,800 million yen	△878 million yen	–
Capital expenditure	3,500 million yen	4,721 million yen	–
Depreciation	3,600 million yen	3,609 million yen	–
R&D expenses	1,000 million yen	1,157 million yen	–

Medium-Term Management Plan (MOVING-10 STAGE3)

In light of rapid changes in the market environment, the company formulated a new medium-term management plan, “MOVING-10 STAGE3” (FY2026 to FY2029), to achieve both growth and capital efficiency, and brought the previous “MOVING-10 STAGE2” to an early close. Under the new plan, the company will focus on expanding its growth businesses, namely the electronic materials business, the medical and piezoelectric-related business and new businesses, while overhauling its capital policy, and it plans an ROE of 8% or more in FY2029.

Item	FY2025 Actual	FY2026 Plan	FY2029 Plan
Net sales	574 (¥100 million)	595 (¥100 million)	590 (¥100 million)
Operating profit	22 (¥100 million)	25 (¥100 million)	45 (¥100 million)
Operating margin	4%	4%	8%
ROE	△1%	3%	8%
EBITDA	61 (¥100 million)	63 (¥100 million)	73 (¥100 million)

Shareholder Returns

The company’s policy is to implement proactive and stable shareholder returns during the STAGE3 period. Dividends will be determined based on the higher of a DOE of 3.0% or more or a payout ratio of 100%. For share buybacks, the company targets 10 billion yen or more during the STAGE3 period (FY2026 to FY2029 combined), and states that it will acquire and cancel shares flexibly in line with progress in improving capital efficiency.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.